Demystifying Innodata: Insights From 4 Analyst Reviews

Innodata INOD underwent analysis by 4 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts have recently evaluated Innodata and provided 12-month price targets. The average target is $60.5, accompanied by a high estimate of $75.00 and a low estimate of $45.00. This upward trend is evident, with the current average reflecting a 22.22% increase from the previous average price target of $49.50.

Decoding Analyst Ratings: A Detailed Look

The perception of Innodata by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Innodata. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Innodata compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of Innodata's stock. This analysis reveals shifts in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Innodata's market standing. Stay informed and make well-considered decisions with our Ratings Table.

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Delving into Innodata's Background

Innodata Inc is a digital services and solutions company. It provides technology and services to information products and online retail destinations. The company has three operating segments: Digital data solutions, Synodex, and Agility. It serves publishers, media and information companies, digital retailers, banks, insurance companies, government agencies, and other industries. Geographically, it operates in the United States, United Kingdom, Netherlands, Canada, and Europe.

Key Indicators: Innodata's Financial Health

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Over the 3 months period, Innodata showcased positive performance, achieving a revenue growth rate of 135.57% as of 30 September, 2024. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Industrials sector.

Net Margin: Innodata's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 33.3%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Innodata's ROE excels beyond industry benchmarks, reaching 45.35%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Innodata's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 22.56% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: With a below-average debt-to-equity ratio of 0.1, Innodata adopts a prudent financial strategy, indicating a balanced approach to debt management.

How Are Analyst Ratings Determined?

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.